THE MAVILAYI SERVICE COOPERATIVE BANK LTD. vs COMMISSIONER OF INCOME TAX CALICUT

The Supreme Court addressed the eligibility of primary agricultural credit societies for deductions under section 80P(2)(a)(i) of the Income-Tax Act, 1961, in light of the amendments introduced by section 80P(4). The court held that the introduction of section 80P(4) does not automatically disqualify these societies from claiming deductions, emphasizing the need for a nuanced interpretation of the provisions. The appeals were allowed, affirming the right of the societies to claim deductions for the relevant assessment years.